DXC plunges 19% on reported exit of Americas boss.
A little bit of a delayed reaction but significant.
https://seekingalpha.com/news/3400385-dxc-plunges-19-percent-reported-exit-americas-boss
12 replies (most recent on top)
Having EDS or HP or HPE on a CV is much more advantageous than DXC which just can't do anything right.
DXC is focused on the revenue and profit. It would clean the windows and the toilets if it meant a multi year contract. Once upon a time, EDS and CSC were focused on providing the best I T Support possible for the best price and delivered on schedule. Today, it is all about making sure the contracts do not allow for being sued in case of late or no delivery, poor quality or cost overruns. The sales people are under pressure to sign new business to keep the pyramid working with new money coming in, but there is very little if any regard to the I T requirements of the client. The best management left years ago and only the sharp elbowed remain. Feel very sorry for the workers and they will find out that having EDS on the CV is not an asset.
So the countdown has begun...
Why Shares of DXC Technology Tumbled Today?
Then of Course DXC puts out a SEC Filing
DXC Technology Company (“DXC” or the “Company”) is clarifying the statement issued earlier today in its Form 8-K. Today, the Company is reaffirming guidance for earnings per share of $7.75 to $8.15 for Fiscal 2019, and that it is trending toward the higher end of that range.
Read of full details on Yahoo.com Finance
Shares of DXC Technology (NYSE: DXC) slumped on Wednesday after the head of DXC Americas left the company, according to a memo seen by The Register. The stock was down about 18.4% at 12:00 p.m. EDT.
So what
DXC, which was formed by the merger of Computer Sciences Corporation and the former enterprises services business of Hewlett-Packard Enterprise, has seen multiple executives leave this year, including the head of global sales in April. DXC Americas head Karan Puri, who joined the company in January, is now being added to that list.
A memo from CEO Mike Lawrie obtained by The Register announced the news: "Today I am announcing that Karan Puri will be leaving DXC Technology at the end of this week. I know you will join me in wishing Karan well in his future endeavors."
The memo goes on to talk about areas of focus for the Americas region, which include hitting its targets for the year, installing a results-oriented management, and becoming the digital transformation partner of choice.
The Register pointed to a double-digit sales decline in the Americas region as a possible reason for Puri's departure.
If the board would get rid of Lawrie and the test of the ex CSC bottom feeders at the top, DXC might have a chance. If you look up "greed" in the dictionary, I bet you'd see Mike Lawrie's picture there.
Reporting second quarter results - November 6th
Investor Day - November 8th
It appears we all have enough time to stock up on the alcohol and popcorn for what should be two days of great story-telling.
In response to today’s movement in the stock of DXC Technology Company (“ DXC ” or the “ Company ”), DXC issued the following statement:
DXC does not comment on rumor or speculation, nor can the Company comment during a blackout period. The Company will be reporting second quarter results on November 6th, and will hold an Investor Day on November 8th.
At that time, the Company looks forward to talking further with its shareholders about prospects for the industry, the opportunities ahead, and DXC’s breadth and scale to capitalize on those opportunities.
The Company reiterated guidance stated previously of earnings per share of $7.75 to $8.15 for Fiscal 2019, and that it is trending toward the higher end of that range.
https://seekingalpha.com/filing/4209024
Oust LAWRIE???? Getting rid of the Kaiser was easier than that. He's locked in, and will only go when the firm dissolves and he can cash out.
Seems like the board should be blaming the CEO for this giant stock drop and looking to oust him. I'm not holding my breath on that, but it's what should happen.
And so it goes on. I genuinely feel sorry for anyone left working at this fcuked up organisation, I can’t see conditions improving anytime soon, if you can get out with a package go for it, it’s doomed.
MickM
No sh-- Sherlock. DXC - I mean CSC - was a screwed firm for the longest time and all Lawrie wanted was money, money and more of that. Client? Be damned with what they want. Keep contracts paying at all costs. By my experience, damn near lost Aon years back but firing 140 workers saved enough money to keep it paying and service went to hell. Deserves it. Staff - GET OUT NOW.
Bite it Lawrie! https://www.theregister.co.uk/2018/10/24/dxc_axes_americas_boss_amid_latest_deck_chair_musical/
One insider told us “DXC is descending into turmoil”, and that earlier this month Lawrie called a “town hall” meeting to confirm more redundancies on the shop floor and “blamed Puri for a 10 to 15 per cent shortfall in [forecast] revenues”.
“There is no way Puri can have had any real chance to move the needle in the short time he was in office and this ‘revolving door’ style of leadership is what goes on at DXC,” said our DXC mole.
DXC started life in April ’17 with 170,000 employees worldwide but now has 134,000 staff. The Register has often spoken to company sources that were concerned about the impact on serving customers.
One of our sources on this occasion told us “the company is in chaos as all the cuts are leading to mounting customer complaints”.